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Highlights

  • Funds under administration rose 23.6% to AUD 125.6 billion, with custodial inflows of AUD 16.4 billion for the half.
  • Total income increased 24.7% to AUD 193.8 million, while EBITDA rose 23.9% to AUD 96.7 million.
  • Net profit after tax climbed 19.9% to AUD 69.0 million, with a fully franked interim dividend of 21.0 cents per share, up 20%.

Netwealth Group Limited (ASX:NWL) shares jumped almost 12.86% to AUD 25.19 on 18 February 2026 as the investor’s responded positively to the financial results for the half year ended 31 December 2025, delivering record funds under administration (FUA), double-digit revenue growth and a higher interim dividend.

Jefferies responded positively to the update as it issued buy rating on NWL with target price of AUD 30.50 per share.

The ASX-listed wealth platform provider posted growth across income, earnings and client metrics during the period, supported by elevated inflows and expansion in managed accounts. The result was delivered excluding the impact of First Guardian-related expenses.

FUA Growth Drives Revenue Expansion

Netwealth recorded FUA of AUD 125.6 billion at 31 December 2025, up AUD 24.0 billion from the prior corresponding period. Custodial inflows reached AUD 16.4 billion, representing a 10.7% increase.

Net flows totalled AUD 8.2 billion, slightly below the previous period, reflecting the outflow of two wholesale institutional accounts totalling AUD 0.4 billion. Managed account net flows rose 42.7% to AUD 3.4 billion, while total funds under management (FUM) increased 30.6% to AUD 31.4 billion.

The number of client accounts increased 13.7% to 172,221, marking the first time more than 20,000 accounts were added over a 12-month period. Financial intermediaries rose 7.3% to 4,089.

Income and Earnings

Platform revenue increased 25.3% to AUD 189.0 million, driven by growth across ancillary, management, transaction and administration fee streams. Ancillary fee income rose 36.5%, while management fee income increased 30.0%.

Total income for the half rose 24.7% to AUD 193.8 million. EBITDA grew 23.9% to AUD 96.7 million, with an EBITDA margin of 49.9%, compared with 50.2% in the prior corresponding period.

Operating expenses rose 25.5% to AUD 97.1 million, reflecting investment in technology, governance and workforce expansion. Headcount increased by 127 to 791 operational employees.

Net profit after tax was AUD 69.0 million, up 19.9%, while earnings per share rose 20.5% to 28.1 cents. Operating net cash flow before tax reached AUD 96.5 million, representing a 99.7% cash conversion ratio.

Dividend and Capital Position

The board declared a fully franked interim dividend of 21.0 cents per share, payable on 26 March 2026, up from 17.5 cents a year earlier.

The company reiterated FY26 guidance, including FUA net flows not expected to differ materially from FY25 and an EBITDA margin of approximately 49%, excluding First Guardian-related expenses. Capitalised software investment for FY26 is forecast at around AUD 12 million.

Industry Positioning and Strategy

During the half, Netwealth progressed initiatives including the soft launch of its individual HIN broker solution and the upcoming launch of Netwealth Private targeting high net worth and ultra high net worth clients.

The company also advanced its Unify integration platform and expanded digital account opening capabilities. Strategic investment in artificial intelligence continues across operations and client services.

Netwealth’s first-half FY26 result was marked by record FUA, double-digit income growth and higher profitability. With continued platform inflows, expansion in managed accounts and further technology investment underway, the company enters the second half with elevated activity across adviser, private wealth and broker segments.